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The foreign exchange department of Bank of America has a bid quote on Canadian dollars (C$) of C$1.1448/$. If the bank typically tries to make a bid-ask spread of 0.5 percent on these foreign exchange transactions, what will the ask rate have to be? (Round answer to 2 decimal places, e.g. 52.75.)

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Based on the bid quote on the Canadian dollar, and the bid-ask spread, the ask rate will be $1.15.

What will be the ask rate?

This can be found as:

= Bid rate + (1 x bid-ask spread)

Solving gives:

= 1.1448 x ( 1 + 0.5%)

= 1.1448 x 1.005

= $1.150524

= $1.15

Find out more on the bid-ask spread at https://brainly.com/question/24280121.

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